MP HC Sets One-Month Target for Morena Officials to Hand Bank Possession of Secured Property, Absent Legal Impediment

Bank of Baroda sanctioned loan facilities of ₹29,95,000 to Parimal Singh Sirdhana, secured by immovable property at Survey No. 817, Village Dhanela, Morena.

After default and classification of the accounts as NPA, the Bank initiated proceedings under the SARFAESI Act. On the Bank’s application under Section 14, the competent authority, by order dated 1 March 2024, directed that physical possession be obtained and handed over to the Bank.

The Bank alleged that the order remained unexecuted despite repeated requests to the Tehsildar. It also stated that it had received no notice of any proceeding before the DRT and knew of no order restraining execution.

The Bank sought a direction for execution of the Section 14 order, relying on an earlier decision of the High Court concerning similar non-execution.

Section 14 of the SARFAESI Act empowers the competent authority to assist a secured creditor in obtaining possession of secured assets.

The Court relied on the directions in IIFL Home Finance Ltd. v. State of M.P. and Others, W.P. No. 2078 of 2023, concerning timely execution of Section 14 proceedings, and their application in Indian Bank (formerly Allahabad Bank) v. State of Madhya Pradesh and Others, W.P. No. 41410 of 2025, decided on 29 October 2025.

Those directions require the District Administration to ensure timely execution; action under Section 14 may be deferred where a DRT interim order restrains proceedings under Section 13(2) and/or Section 13(4), until that order is modified or vacated.

The Section 14 order had already been made in the Bank’s favour but remained unexecuted for a substantial period.

The Bank also stated that it knew of no stay or other restraining order, and the State’s counsel accepted that directions could be issued consistently with the earlier decision.

Applying the prior directions on expeditious execution, the Court required the District Administration and Tehsildar to act promptly, while making execution subject to any subsisting stay or other legal impediment.

The Tehsildar and other competent authorities were directed to take the necessary steps to obtain and hand over physical possession to the Bank, preferably within one month of receiving a certified copy of the order, provided there is no subsisting stay or other legal impediment.

The Court expressed no opinion on the merits of the SARFAESI proceedings and required the authorities to act in accordance with law.